Objection Response: Price 50% Higher Than Competitor

Context: VP of Operations at mid-market manufacturing (500 employees), $150K deal vs. legacy vendor

Response Framework 1: TCO + Legacy Hidden Costs (RECOMMENDED)

Core Approach: Expose the hidden costs of legacy systems and reframe from upfront price to 3-year total cost of ownership

Scripted Response:
“I completely understand - $75K is real money and you need to justify every dollar to leadership. Can I ask you something?

When you’re comparing our $150K to their $75K, are you comparing apples to apples? Here’s what most VPs of Ops discover after choosing the legacy vendor:

Legacy Vendor 3-Year TCO:

• Software license: $75K
• Implementation (typically 6-9 months): $45-60K
• Custom integrations (no modern APIs): $30-50K
• Training and change management: $20-30K
• Annual maintenance fees (15-25% yearly): $40-60K
• Consultant fees for workarounds: $25-40K
• Total: $235-315K

Our 3-Year TCO:

• All-inclusive price: $150K (modern APIs, training, support, updates included)
• Total: $150K

So what looks like 50% more expensive upfront is actually 36-52% less expensive over three years. And here’s the kicker - that legacy vendor uses 20-year-old technology. You’re essentially paying them to maintain outdated systems while we’re building for AI integration, real-time visibility, and the supply chain challenges you’ll face in 2026 and beyond.

Have you asked them for a detailed breakdown of implementation, integration, and maintenance costs? Because 97% of supply chain professionals say their legacy systems are inadequate for modern needs.”

Why This Works for VP Operations:

• Operations leaders are measured on efficiency and cost control - TCO speaks their language
• Exposes vendor pricing tactics (low base price, high hidden costs)
• Positions them as making a strategic, informed decision vs. reactive price comparison
• Uses industry data (97% statistic) to validate their concerns about legacy systems
• Addresses the real pain point: outdated technology that can’t scale

Follow-Up Questions:

1. “What’s your budget for the full project including implementation, not just software purchase?”
2. “Have you asked the legacy vendor for customer references on actual implementation timelines and total costs?”
3. “What would it cost your operations if this system can’t support AI-driven forecasting or real-time visibility when you need it in 18 months?”
4. “How much time does your team currently waste on manual workarounds because of outdated systems?”

Response Framework 2: ROI + Operational Efficiency Gains

Core Approach: Shift from price to payback period through measurable operational improvements

Scripted Response:
“Absolutely - I’d push back on a 50% higher price too if I were in your shoes. Let me ask you this though:

What matters more to your CFO and leadership team - the upfront investment, or how fast you get your money back and what you gain operationally?

Here’s what we typically see with mid-market manufacturers your size who implement modern supply chain systems:

• 10-20% inventory reduction (for you, that’s likely $200-400K in freed-up working capital)
• 15% improvement in forecast accuracy (reducing stockouts and expedited freight costs)
• 30% faster planning cycles (freeing up your team’s time for strategic work instead of firefighting)
• 38% reduction in freight delays through real-time tracking

If we’re conservative and say you capture just half those benefits - $100K in inventory reduction, $30K in avoided expedited freight, and 20 hours/week of team time savings - you’re looking at 6-9 month payback on our solution.

The legacy vendor? Their customers tell us it takes 18-24 months just to get the system fully functional because of integration nightmares and limited functionality. That’s not payback - that’s still in the implementation phase.

So the question isn’t ‘Which costs less upfront?’ It’s ‘Which one actually delivers measurable ROI within a year?’

What operational improvements would make this a no-brainer investment for your team?”

Why This Works for VP Operations:

• VPs of Operations are measured on KPIs: inventory turns, on-time delivery, planning efficiency
• Translates price difference into concrete operational gains they can measure
• Uses industry benchmarks (10-20% inventory reduction) for credibility
• Reframes from cost to value creation and team productivity
• Positions legacy vendor as slow to value vs. modern alternative

Follow-Up Questions:

1. “What’s your current inventory carrying cost, and what would a 10% reduction be worth?”
2. “How much does expedited freight cost you annually when forecasting misses the mark?”
3. “What percentage of your supply chain team’s time goes to manual data entry and firefighting vs. strategic planning?”
4. “What ROI timeline does leadership expect for this investment?”

Response Framework 3: Risk-Based + Legacy System Failure Cost

Core Approach: Position price difference as insurance against massive failure costs of outdated technology

Scripted Response:
“I appreciate you being cost-conscious - that’s exactly what a good VP of Operations should do. Let me ask you a tough question:

What would it cost your business if you implement the cheaper legacy system and it fails or can’t deliver? Not just the $75K software cost, but:

• 6-12 months of implementation delays (legacy systems average 9 months vs. our 3-4 months)
• Operations team time wasted on a system that doesn’t deliver real-time visibility
• Cost of ripping it out and starting over in 18-24 months when you hit its limitations
• Continued reliance on manual processes and Excel spreadsheets
• Security vulnerabilities from 20-year-old technology (ransomware attacks shut down manufacturers for days)
• Inability to integrate AI-driven forecasting when competitors are using it

In 2025, a major automotive manufacturer suffered a ransomware attack through a legacy SCADA system that hadn’t been updated in over a decade. Production shut down for days. The cost? Millions in lost revenue.

Most operations leaders tell me the risk cost of choosing the wrong supply chain system is 10-15x the price difference. That’s $750K-$1.1M in potential risk vs. $75K in upfront savings.

Manufacturing can’t afford to get supply chain visibility wrong in 2025. The question isn’t ‘Which is cheaper?’ It’s ‘Which one actually works and scales with our business?’

How confident are you that the legacy vendor can deliver modern capabilities like real-time tracking, AI forecasting, and seamless integrations?”

Why This Works for VP Operations:

• Manufacturing operations are risk-averse (production delays, security threats, downtime)
• Makes $75K savings look insignificant vs. failure cost
• Addresses real 2025 concerns: cybersecurity, AI capabilities, integration complexity
• Uses concrete example (automotive ransomware) to make risk tangible
• Shifts burden of proof to legacy vendor

Follow-Up Questions:

1. “What would a 3-day production shutdown cost your business?”
2. “How would your team respond if the legacy system can’t provide the real-time visibility you need when supply chain disruptions hit?”
3. “Have you talked to their customers at similar-sized manufacturers about actual implementation timelines and hidden costs?”
4. “What’s your tolerance for cybersecurity risk with 20-year-old technology?”

What NOT to Say (Common Mistakes)

• “You get what you pay for” - Dismissive and condescending; insults their judgment
• “We’re worth it” - Subjective claim with no evidence; sounds arrogant
• “The legacy vendor is terrible” - Attacking competitors damages your credibility; let them discover limitations
• “Let me see if I can get you a discount to match” - Destroys value positioning and teaches them to negotiate harder
• “Price shouldn’t matter for something this important” - Completely dismisses real budget constraints; tone-deaf
• “Everyone chooses us over them” - Obviously false and damages trust
• “50% isn’t that much more” - It absolutely is; minimizing their concern is insulting

Manufacturing-Specific Context

Industry Statistics:

• 97% of supply chain professionals recognize urgent need to modernize IT infrastructure and say current legacy systems are inadequate
• Legacy system maintenance costs consume 60% of project budgets through custom integrations and workarounds
• Mid-market manufacturers achieve 10-20% inventory reduction and 15% forecast accuracy improvement with modern SCM software
• Supply chain management software market growing from $33.39B (2025) to $52.75B (2030) driven by AI integration and digital transformation
• Annual maintenance renewal prices for legacy vendors increasing from 3-5% to 7-10% beyond 2025
• Legacy systems average 18-24 months to full functionality vs. 3-4 months for modern cloud solutions

VP Operations Persona (Manufacturing, Mid-Market):

Top Priorities: Cost control, operational efficiency, inventory optimization, on-time delivery, supply chain resilience, team productivity

Decision Style: Data-driven, risk-aware but not risk-averse, focused on measurable KPIs, seeks peer validation, values proven results over flashy features

Fears:

• Implementation delays that disrupt operations
• Budget overruns and hidden costs
• Technology that doesn’t deliver promised ROI
• Team resistance to new systems
• Vendor lock-in with expensive maintenance contracts
• Falling behind competitors who modernize faster
• Cybersecurity vulnerabilities from outdated systems

Language to Mirror: “Operational efficiency,” “inventory turns,” “on-time delivery,” “working capital,” “forecast accuracy,” “real-time visibility,” “supply chain resilience,” “total cost of ownership,” “payback period”

Recommended Response Strategy

1. Start with Framework 1 (TCO + Legacy Hidden Costs) - Most compelling for this specific objection; exposes legacy vendor pricing tactics and uses hard numbers
2. If they’re analytical and KPI-focused, use Framework 2 (ROI) - Translates price to operational gains they can measure and report to leadership
3. If sensing risk concerns, pivot to Framework 3 (Risk-Based) - Manufacturing operations leaders fear disruption; position modern solution as safer choice

Tone: Professional, empathetic to budget reality, data-driven, confident without arrogance. Avoid sounding defensive about price - instead, position it as a strategic investment vs. tactical purchase.